Michaela
Crypto exchange Binance and its founder, Changpeng Zhao, are facing a new federal lawsuit alleging the platform knowingly facilitated cryptocurrency transactions for Hamas, with claims stating Binance actΠ΅d deliberately on a large scale to enable the transfers.
Key Points
- In a recent court filing, families of the victims of the 2023 Hamas attack allege that Binance and Zhao, facilitated the transfer of more than $1 billion in cryptocurrency to terrorist organizations
- The complaint claims the exchange acted deliberately and systematically, executing the transactions on what plaintiffs describe as an βindustrial scale
- β
In a recent court filing, families of the victims of the 2023 Hamas attack allege that Binance and Zhao, facilitated the transfer of more than $1 billion in cryptocurrency to terrorist organizations. The complaint claims the exchange acted deliberately and systematically, executing the transactions on what plaintiffs describe as an βindustrial scale.β
The plaintiffs claim that Binance knowingly offered financial services to Hamas and toΠΎk active measures to conceal its Hamas-linked accounts and transactions from U.S. regulators and law enforcement.
According to the plaintiffs, Binance deliberately facilitated financial services for Hamas while actively taking steps to hide the groupβs accounts and transactions from U.S. regulators and authorities.
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The lawsuit also alleged that Binance used pooled wallets, which offered minimal record-keeping and lax identity verification, enabling potentially unmonitored transactions.
In January, Binanceβs legal team appeared before the U.S. District Court for the Southern District of New York, requesting dismissal of a lawsuit brought by families affected by the 2023 Hamas attack. Plaintiffsβ attorneys argued that in 2020, Binance allowed a flagged Hamas VIP to exit the platform without freezing assets, effectively assisting the account holder despite prior warnings.
Furthermore, in October, President Donald Trump granted a pardon to Zhao following extensive lobbying and public appeals asserting his innocence. Zhao had completed a four-month prison sentence in 2024 after pleading guilty to violating U.S. anti-money laundering laws, a case initiated under President Joe Bidenβs administration amid heightened regulatory scrutiny of the crypto sector.Β
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As part of the settlement, Zhao stepped down as Binance CEO, paid a $50 million personal fine, and the exchange itself faced a $4.3 billion penalty. Trumpβs pardon came amid speculation over potential presidential intervention, though sources noted his administration initially approached the matter cautiously, given Trumpβs own connections to the cryptocurrency industry.
The lawsuit spotlights growing concerns over the role of major crypto platforms in monitoring illicit activity, emphasizing how regulatory gaps and platform practices can intersect with global security risks. Observers say the case could set a precedent for holding exchanges and executives accountable for the movement of digital assets linked to sanctioned or terrorist entities, signaling a potentially transformative moment for compliance standards across the crypto industry.
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
